The 3D Currency Management mortgage for loans over £500,000, tracks bank rate plus 2 per cent, up to a bank rate level of 3.5 per cent which means the loan will never exceed 5.5 per cent.
The cost of capping the rate is paid up front with equity in the property. 3DCM manages the loan to pay back the cost of this cap and says any additional trading performance can be used to reduce the size of the mortgage.
Founder David White says: “Once interest rates start to move, it will be too late to secure a competitive fixed rate. This new product provides a simple solution to this dilemma.”